The remittance inflows - private investment nexus in Asian developing countries: does institutional quality matter?

Nguyen Van Bon ()
Additional contact information
Nguyen Van Bon: UFM Research Team, University of Finance - Marketing (UFM), Ho Chi Minh, Vietnam

Economic Research Guardian, 2023, vol. 13, issue 1, 31-46

Abstract: The literature illustrates that remittance inflows boost private investment in developing countries. Does it hold for the case of Asian developing countries? Does institutional quality significantly contribute to the remittance inflows - private investment nexus in these countries? We look for answers by studying the influences of institutional quality, remittance inflows, and interaction on the investment of the private sector for a dataset of 25 developing economies in Asia between 2002 and 2020. It employs the twostep difference GMM estimator and the defactored instrumental variables estimator to estimate and test the robustness. The results seem counter-intuitive that remittance inflows crowd in private investment, while institutional quality crowds out it, but their interaction boosts it. Besides, trade openness and economic growth increase, but inflation decreases private investment. The paper provides some policy lessons for developing countries in Asia in improving institutional structure to get more remittances and stimulate private investment.

Keywords: Institutional Quality; Remittance Inflows; Private Investment; Developing Countries in Asia (search for similar items in EconPapers)
JEL-codes: F24 O11 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.ecrg.ro/files/p2023.13(1)24y3.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wei:journl:v:13:y:2023:i:1:p:31-46

Access Statistics for this article

Economic Research Guardian is currently edited by Mihai Mutascu

More articles in Economic Research Guardian from Mutascu Publishing
Bibliographic data for series maintained by Mihai Mutascu ().